Sterling Stabilizes and Recovers, But Too Soon to Confirm Bottoming
| Action Insight Mid-Day Report 9-26-22 |
Sterling Stabilizes and Recovers, But Too Soon to Confirm Bottoming |
Dollar is extending its broad-based rally today. But other positions are somewhat changing. Sterling is now recovering as traders take profit, while awaiting an unconfirmed statement from BoE. Euro is also paring some recent losses. Meanwhile, Swiss Franc, Yen and Canadian soften in general. Australian and New Zealand Dollar are mixed. Technically, while Sterling recovers, it's too soon to call for bottoming. The levels to watch included 1.1404 support turned resistance in GBP/USD, and 0.8720 resistance turned support in EUR/GBP. As for GBP/CHF, break of 1.1146 resistance is needed to confirm bottoming at 1.0183. Otherwise, price actions from there are viewed as part of a corrective pattern only. Down trend would resume for another low after the correction completes. In Europe, at the time of writing, FTSE is down -0.89%. DAX is down -0.05%. CAC is down -0.11%. Germany 10-year yield if up 0.059 at 2.084. Earlier in Asia, Nikkei dropped -2.66%. Hong Kong HSI dropped -0.44%. China Shanghai SSE dropped -1.20%. Singapore Strait Times dropped -1.40%. Japan 10-year JGB yield rose 0.0082 to 0.253. |
GBP/USD Mid-Day Outlook Daily Pivots: (S1) 1.0706; (P) 1.0990; (R1) 1.1140; More... Break of 1.0844 minor resistance suggests that a temporary low is formed at 1.0351, ahead of 100% projection of 1.3748 to 1.1759 from 1.2292 at 1.0303. Intraday bias in GBP/USD is turned neutral for some consolidations. But risk will stay on the downside as long as 1.1404 support turned resistance holds. Sustained break of 1.0303 will pave the way to parity. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 00:30 | JPY | Manufacturing PMI Sep P | 51 | 51.1 | 51.5 | | 08:00 | EUR | Germany IFO Business Climate Sep | 84.3 | 87.1 | 88.5 | | 08:00 | EUR | Germany IFO Current Assessment Sep | 94.5 | 96 | 97.5 | | 08:00 | EUR | Germany IFO Expectations Sep | 75.2 | 78.6 | 80.3 |
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